(a) Once filed, the application will be referred to the appropriate city departments for an investigation into the applicant's eligibility for a license. If a license is available and there are not more applications received at the same time than licenses available, the city may issue a license unless:
(1) The applicant has made a false statement on the application or submits false records or documentation; or
(2) The applicant is under the age of twenty-one (21) years; or
(3) The applicant has been convicted of a disqualifying felony offense as defined by South Dakota law; or
(4) The license is to be used for a business prohibited by state or local law, statute, rule, ordinance, or regulation; or
(5) The applicant has had a cannabis establishment license revoked by the city or a registration certificate revoked by the state in the twenty-four (24) months preceding the application; or
(6) An applicant is overdue in payment to the city of taxes, fees, fines, or penalties assessed against or imposed upon the applicant in relation to any cannabis establishment; or
(7) Subject to Section 10-504(e), the applicant does not possess a valid and current registration certificate issued by the South Dakota Department of Health;
(8) The applicant will not be operating the business for which the license would be issued; or
(9) The location for the cannabis establishment does not comply with zoning requirements as set by Appendix A Zoning Regulations.
(b) The license must be posted in a conspicuous place at or near the entrance to the cannabis establishment so that it may be easily read at any time.
(c) For applications received by the city after July 1, 2022, the applications will be considered in the order in which they are received. If multiple applications that conform with ordinance requirements are received on the same business day for a particular license, the city will choose the successful applicant through a lottery.
(d) When a lottery is conducted, the applicants will be placed in a lottery queue based on the order in which they were selected. If the applicant selected first in the lottery is unable to comply with the terms of this article or state law, the next applicant in the lottery queue will be considered for the cannabis establishment license. The lottery queue will be active for twenty-four (24) months from the date the lottery was conducted, after which the lottery queue will expire.
(e) If an applicant otherwise meets the requirements to be issued a cannabis establishment license but has not been issued a registration certificate from the South Dakota Department of Health, the city may issue the applicant a provisional license. A provisional license expires one hundred eighty (180) days from the date of issuance. If the applicant is not issued a registration certificate from the South Dakota Department of Health prior to the expiration of the one hundred eighty (180)-day term of the provisional license, the city will not issue the applicant a cannabis establishment license. To be considered again for a cannabis establishment license, an applicant whose provisional license expired must submit a new initial application that conforms with all the requirements in this article and state law. This new initial application will not be given priority over other active applications and will be considered in the order in which it was received in relation to any other active applications on file with the city. This new initial application will not be placed in any active lottery queue.
(f) If a conforming application is submitted but no licenses are available, the application will be on file and active for twenty-four (24) months from the date it was submitted. If an applicable cannabis establishment license becomes available while an application is active under this section, the applicant may be considered for the cannabis establishment license without having to submit a new initial application. After twenty-four (24) months have elapsed since the application was submitted, the application will expire. Upon the expiration of an application, an applicant must submit a new initial application that conforms with all the requirements in this article and state law to be considered for a cannabis establishment license.
(g) Upon issuance of a license, the applicant shall pay a license fee as set by resolution. The license will not be in effect until the applicant pays the license fee in full. The license fee will not be prorated.
(Ord. No. 1346, 6-21-21; Ord. No. 1355, 10-4-21; Ord. No. 1371, 7-5-22)